Banking instrument for use in utilizing saving deposits as a credit without withdrawal



M. M. STOCKTON BANKING INSTRUMENT FOR USE IN UTILIZING SAVING DEPOSITS AS A CREDIT WITHOUT WITHDRAWAL Filed Sept. 1, 1925 NUMBER 5T. LOUl5, 2--

BLANK NATloNAL BANK,

ON |92 PAY TO 7 I DOLLARS BLANK NATIONAL BANK 5 CASHIER ON I9Z CHARGE MY SPENDERS SAVINGS ACCOUNT DOLLARS Jr was warm: mum,

gPENDERs mas CCOUNT N BER up um cw n he presented mm to m mum whentho. lower secfion is fiwmjfb bepmpervlg Signed $0,; on mr purl a be d!ach4, q" d y m off-w of th: bank and returned to five Merchant yrumtm 5a 7 [men for: MEfiED/TH M. .Sroazrrom maw w Patented Dec. e, 1924.

oniran mam re ease PATENT- @FFWE.

; MEREDITH STOCKTON, OF ST. LOUIS, MISSOURI.

BANKING INSTRUMENT FOR USE IN UTILIZING SAVING DEPOSITS AS A'fiREDIT I WITHOUT WITHDBAWAL.

Application filed September .1, E23. serial 180,660,481;

To all whom it may concern:

vBe i known'that I, MEREDITH M. Simon- TON, a citizen of the ,United States, residing in the city of St. Louis and State of Missouri, have invented new and useful Improvements in Banking Instruments for Use in Utilizing Saving Deposits as a Credit without Withdrawal, of which the following is a specification.

This invention relates to banking, and particularly to the subject of savings accounts.

The general object of'the invention is to provide a banking device by the use of which a person, having'a savings account, may purchase goods on a cash basis without withdrawing the savings account, by agreeing to deposit the amount of the purchase, in tlme payments, in the bank, whereupon the bank issues to the merchant an obligation of the bank payable at the expiration of the time payment period, and which obli ation the merchant may discount at the ban at a preferred rate, if he so desires. A merchant who does business only on a cash basis, or on monthly credits, is thus enabled to accommodate a customer who wishes to purchase goods on a time payment plan extending over a considerable period of time, without any risk of losing deferred. payments, while the purchaser is afiorded a means, by the bank, of buying goods on the time payment or installment plan by paying the money into the bank where it draws interest, and is not only discouraged from withdrawinggthe amount of This savings, either at one time or periodically, to meet payments on the purchase, but .is encouraged, by the arrangement, to further saving. Thus, as the money of the depositor is not withdrawn, the bank can afl'gord to continue to pay interest; while if the merchant desires to collect the amount of the purchase from the bank before the expiration of the time period allowed for a re-payment to the bank, he has to accept the customary discount which is part of the agreement madewith the bank.

I The net result of the transaction, efiected according to my invention, is that the purchaser, desirin to purchase goods to the value of, say 100.00, and having at least this amount on deposit, by authorizing the bank to enter a deferred charge against his savings account for such amount, and agreeing to make weekly or monthly payment for a certain period, say, six months, to total this amount, can procure/from the merchant the goods to the value 1': $100.00 as thou h he had paid in cash. he bank, having t e amount of the purchase in hand, assumes the obligation of the purchaser and issues to the merchant an agreement to pay the amount of the purchase money at some date in the future, covering the period required for the depositor to complete payments to the bank to the amount of the purchase. The merchant, on his part, can hold the-banks obligation until the expiration ,of the time payment period, and then collect the full amount, or, under an agreement with the bank, he can discount the banks obligation, at any time, ata preferred rate agreed upon.

Thus $100.00 spent in thismanner, instead definite idea of spending the amount he'has saved; and instead of combating this tendency which is largely useless, my invention puts the bank in a position to take advantage of this condition to the mutual advantage of both the bank andthe saver. The plan also affords thesaver all the advantages and conveniences of time payments without. any of the disadvantages of that method of purchase. As one of the great conveniences to the merchant, it may be mentioned that this plan will do away with the necessity of recording and releasing chattel mortgages on goods purchased on the time payment plan, which is made necessary by the laws of most States before a merchant can replevin goods sold on the installment plan, and on which the purchaser has defaulted in payments.

The above recited objects of the invention and also the'advantages accruing therefrom, are efiected and secured by means of the novel device shown in the accompanying drawing and hereinafter claimed, and.com- I prising two connected blank memoranda,

first memorandum and delivered to the merchant. i

The drawing is a view of the banking de vice forming the subject of this invention.

Referring'to this device, the numeral 1 indicates a blank form of obligation to be filled in and signed by an oflicer of the issuing bank and having, in addition to the issuing banks name, printed in bold type as usual on checks, or the like, spaces for the number of the account, the place and date of issuance, the amount involved, the date when the bank promises to pay such amount, the name of the payee, and for the name of an oflicer of the issuing bank placed under the name of said bank printed in the signature space. The numeral 2 indicates a blank form of obligation to be signed by the purchaser and having, in additlon to the issuing banks name in bold type, spaces thereon for filling in the number of the account, the date of issuance the date on which the amount of the purchase is to be charged against the savings account followed by wording authorizing the bank to make such charge, a space for the amount of the purchase, and an agreement printed on the memorandum over. a space for his signature, which obli ates the purchaser to deposit in the bank .t e amount of the charge in weekly or monthly installments of a given amount over a period oftime extending from the date. of

the obli ation to such date in the futureas will ena le the obligation to be discharged. The length of time allowed the purchaser to complete his time payments will, of course, be the same as that for which the obligation of the bank, issued to the merchant, will run. Between the two memoranda, 1 and 2,

I preferably provide either a line of per- TONI-U011 3, or some other way of weaken mg the paper along this line, so that after the merchant has presented the signed obligation of the purchaser to the bank, andthe;

bank has signed its obli ation to the merchant, the two memoran a maybe readily separated.

A bank using my invention would make suitable arrangements for utilizing the same with. various merchants handling difierent lines of goods so that the savings depositors oi the bank could be accommodated in making any character of purchase, and the merchants making such arrangement with the bank would reap the advantage of having such customers of the bank directed to them.

It will be readily seen, from the above outline of the method of practicing my inventron, that the bank not onl does not lose, but in the aggregate woul gain in the amount of its savings deposits; that the customer does not lose the interest which he otherwise would lose by withdrawing his savings, and in reality, receives interest on money spent; that the merchant is absolutely secured in his payment; that the bank is also absolutely secured, having the amount of the purchase on hand, and an authority from the epositorto enter a deferred chargp against it; and, finally, that the depositor as all of the advantages of a cash purchase with the privilege of making time payments but without any of the disadvantages applying to the installment plan.

I claim:

'1. A banking device for enablin a savings account to be used. without wi draws] in making purchases from a merchant on a cash basis, comprising two connected and separable memoranda, the one being a blank form containing indicia constituting an obligation by a bank to pay a certain amount of money-at a future date, and the other being a blank form containing indicia constitutin an authorization by a depositor of the ban having a savings account therein, authorizing the bank to make a charge against the savings account at a certain date in the future.

2. A banking device for enabling a savings account to be used without withdrawal in'making purchases from a merchant on a cash basis, comprising two connected and separable memoranda, the one being a blank .formcontaining indicia constituting an obli ation by a bank to pay a certain amount 0? money at a future date, and the other being a blank form containing indicia constituting an authorization by a depositor of the bank having a savings account therein, authorizing the bank to make a charge against thefsavings account at a certain date 1n the future, and containing an a reement that the depositor will make week y or monthly payments of a stipulated amount over a certain period of time, terminating at the date of maturity of the instrument.

3. A banking device for enablin a savings account to be used without wit idrawal in making purchases from a merchant on a cash basis, comprising two connected and separable memoranda, the one being a blank form containing indicia constituting an 0bli ation by a bank to pay a certain amount of money at a future date, and the other be ing a blank form containing indicia constituting an authorization by a depositor of the bank having a savings account therein, authorizing the bank to make acharge against the savings account at a certain date, in the future, and containing an agreement that the depositor will make weekly or monthly payments of a stipulated amount over a certain period of time, terminating at the date of maturity of the instrument, each of said memoranda containing a suit ably designated space for receiving the number of the savings account.

4. A banking device for enabling a. savings account to be used without withdrawal in making purchases from a merchant on a cash basis, comprising two connected and separable memoranda weakened along a line of separation, the one memorandum bein a blank term containing indicia constituting an obligation by abank to pay a certain amount of money at a future date, and containing the name of the bank and a space suitably designated for the signature of an ofi icerthereoi, and the other memorandum being a blank term containing indicia constituting an authorization by a depositor of the bank having a savings account therein,

authorizing the blank to-make' a charge in making purchases from a merchant on a cash basis, comprising two connected and separable memoranda, the one being a'blank number of the account, the date vvhen the v payment is to be made, and theamount oi the payment, and containing the name ot the bank in the signature space, with a suitably designated space tor the signature oi an oficer of the bank thereunder, and the.

other memorandum being a blank form containing indicia constituting an authorization by a depositor of the bank having a savings account therein, authorizing the bank to make a charge against the savings account at a'certain date in the future, and having suitably desi nated spaces for date, the number of the savings account, the date when the charge is to be made, the amount thereof, and for the depositors signature, and containing also an agreement on the tit dti

part of the depositor to make periodical payments into the bank of a stipulated amount to total the amount of the charge. In testimony whereof, I have hereunto set my hand. I V

MEREDITH, M. STOCKTON. 

